Legislation introduced yesterday aims to ensure eligible properties providing housing to seniors, such as nursing homes and special care homes, are subject to a lower provincial property tax rate for the 2024 and subsequent taxation years.
Under proposed amendments to the Real Property Tax Act, these properties would be considered non-owner-occupied residential properties, and subject to a property tax rate of $0.5617 per $100 of assessment, much like apartments and residential rental properties.
“This will provide cost relief to a sector that provides housing for residents, including some of our most vulnerable populations,” said Finance and Treasury Board Minister Ernie Steeves.
Under the current tax system, these properties are considered “other residential” property and were subject to a provincial property tax rate of $1.0345 per $100 of assessment.
If passed, the changes would provide about $6 million in property tax relief annually to more than 700 properties.
The 2022-23 budget included a three-year, phased-in reduction of property tax rates, beginning with the 2022 taxation year; these were accelerated last fall to be fully implemented for the 2023 taxation year.
As a result of the phased-in reductions, the provincial property tax rate for non-owner-occupied residential properties – which includes apartments and residential rental properties – has been lowered by 50 per cent since 2021. The rates for other residential and non-residential properties have been reduced by 15 per cent. The full phase-in of these reductions has provided about $121 million in tax relief to property owners.
Comments